Embrace your Customers
Nilesh Singh
Product Development/Launches|Robotic Process Automation|EHR|Marketing Automation|AI Enthusiast
U.S. companies lose more than $62 billion annually due to poor customer service
As shocking as it may sound, but companies are losing a great number of customers than they are ought to. Around 33% of Americans state that - they think of switching their current services over a single instance of poor services.[1]
When inquired why going through the trouble of finding another company with analogous services; they had many reasons to give -
- Around 49% wanted to leave because they felt unappreciated
- Other 37% didn’t want to have another encounter with rude staff
- While 30% hated being passed around to multiple agents, the other 27% were not able to speak to any agent/or had no answer.
What if our customer(s) have a negative experience?
This might not be so surprising of a question from us when we can see our sale unscathed or are too busy to notice the change or loss of a customer/consumer. It is as vital to retaining our existing customers as it is important to make new ones. If the question is why then it all boils down to one answer – the numbers.
Below is a small illustration of how customers react after a single negative experience.[2]
If a single negative experience can result in such drastic measures then we ought to ensure that they are not repeated or even do not occur in the first place.
5% increase in customer retention produces more than a 25% increase in profit[3]
If the customer can react (rightfully so) after a single negative encounter or experience; it’s obligatory to ensure to retain every one of them. A retained long-term customer tends to buy more from a company over time which can result in a decline in operating costs associated. They also happen to refer others to your company; which is the most rewarding to the growing business. Above all, they are most likely to be open to paying a premium to continue to do business with you than to switch
What is customer service and why is it important?
It might have been an age-old question which requires to be revisited every now and then. In simple etymology of the term might simply direct to the services we render to a given customer to ensure a healthy business. But in this global economy; these age-old questions need to be revisited.
Earlier, a small business would have continued to flourish with the good intent and behavior of its owner. Now, our customers have an abundance of choices and there is no denying that. We are in midst of a global era where our customers tend to rely on the rating systems and prior reviews. Hence it’s imperative to ensure we provide satisfactory to exceptional services.
What Impacts Our Rating/Reviews?
Research shows 80% of the business believe they deliver exceptional customer service. But that same study proved that only 8% of customers agree that service is exceptional. This explains the gap between the assumption of us companies and the actual customer whom we regard as kings of our businesses. [4]
Let us ponder up this and understand what can be done to close this gap.
- Most complainants are dissatisfied with how their problems are being handled. People don’t complain just to complain (at least let us start with assumptions) they have a legitimate concern and we as businesses need recognize that as an opportunity; an opportunity to improve rather a problem.
We companies have to understand that just answering the complaints increases customer advocacy across all customer service channels. Conversely NOT answering complaints decreases customer advocacy across all customer service channels.
- Multiple Channels or Social outlets continue to be a larger source of reviews for our customers. 74% of customers use at least 3 or 4 channels when interacting with big companies for issues.
Facebook, Twitter, Instagram, Review sites, and forums allow customers to explain in detail their experiences either way. It is been established that there is an eightfold increase in customer complaints about business on social Media[5]
What can we do?
When it comes to deciding on a purchase, 64% of people find customer experience more important than price.
Since every purchase/service is an experience in itself let us move a step forward and ensure to continue
- Let us make them feel essential and valued.
Let us make an effort toward our customers that they are indeed an essential part of your success. Congratulate and celebrate them. Send them cards on their Birthday/ Anniversary, send a coupon for their next purchase. Send a letter along with the gift certificate on the purchase anniversary. Make personal connections with your clients. Bonding is important. Make them feel heard.
Personalization always makes our customers dearer.
- Pay attention to customer inquires
Irrespective of the volume and intensity of one's inquires, let us vouch to ensure a response at the quickest. Find out what your customers like and dislike by listening to their inquiries and feedback.
Always thank them for bringing the issue to your attention and send an additional note to them when it is taken care of. Let them know that you are releasing a new product or service that will cater to their needs to make them know that their opinions are being taken into account.
- Resolve their issue with Speed
Research from MarketingCharts shows speed is the most important aspect of a good customer service experience
- Create a VIP list of customers.
You can give these VIP customers special discounts or host an event just for them. Make it a time to ask if they have questions and what they like best—and least—about their purchase. They’ll appreciate your continued interest; that you haven’t forgotten them.
- Try to respond to your customers across all channels i.e. NOT just via phone or email but Social Media too
No one should feel ignored. Make use of some automation software like Google Alert or social media listening platforms like Mention.net or Hootsuite (can start with the free version) - This software helps you deploy an array of keywords to locate indirect and nonobvious complaints.
Remember, it always isn’t your fault – but it’s always your business.
We all have at least encountered a scenario where the business is been bullied by an unappreciative customer. It is a human tendency, that when we face criticism, rejection, or fear when we feel fewer values. It is biological; our bodies produce a higher level of cortisol a hormone that shut down the critical thinking center of our brains and activates conflict aversion and protection behaviors.
Hence, we have our defensive mechanism activated. It happens to people on either end; hence it is very essential, to ensure we calm down and react critically rather than emotionally. It is has been calculated that these defensive mechanisms can last for 26 hours or more making us and our customers bother reactive and sensitive.
In these atypical situations what can be done? Irrespective of the appropriateness of the complaint, be patient, and always respond with positive attributions and acknowledge the problem. "I am sorry" is NOT an admission/liability, it’s a declaration of empathy.
Sources:
[1]https://www.businesswire.com/news/home/20171215005416/en/WellActually-Americans-Customer-Service